Financially ailing Iomega has a new president and chief executive officer (CEO).
The board of directors has announced that Jodie Glore is the new top executive of the Roy, Utah, drive and disk manufacturer. Glore, 51, was most recently president and chief operating officer of Rockwell Automation, which grew under his leadership from a US$2.1 billion company to $4.5 billion in four years, according to an Iomega statement.
Iomega could use that kind of growth. Last week, the company reported that its third-quarter revenue dropped 9% from a year ago and also reported a net loss of $7.6 million. An after-tax loss, including a one-time charge related to the acquisition of Nomai, totaled $14.8 million.
Revenue from both the Jaz and Ditto line of disk drives also dropped, with flat revenue for the Zip disk drive line, the company said in a statement.
The company has struggled this entire fiscal year, blaming losses in the first quarter on a decline in product shipments, especially to non-U.S. markets. On the heels of announcing that it expected a first-quarter loss, Kim Edwards resigned as president and CEO last March.
However, top company officials, including James Sierk, who was the interim president and CEO and continues to serve on the board, have predicted that Iomega will return to profitability in the fourth quarter of this year.
Iomega also is the target of an investor lawsuit, filed in Chicago by shareholders who bought company stock between September 1997 and January 1998. The shareholders allege that Iomega misled them regarding expected financial performance and plans for a new 2Gb Jaz2 drive, whose release was delayed.
A class-action lawsuit also was filed last month in Delaware Superior Court against the company, alleging that a defect in Zip drives causes a clicking noise that can damage the drive or disks. Iomega confirmed the lawsuit in a statement last month and said it stands by the quality of its products and will vigorously defend itself in court.
Iomega, in Roy, Utah, can be reached at +1-801-778-7700 or at http://www.iomega.com/.